The G20 Compact with Africa - The Audicity of Hope

Abstract

The verdict on the Compact with Africa (CwA) in its third year is that private cross-border equity flows have not material­ised and neither have domestic resources been mobilised. The African countries are not to blame, as their governance scores have improved. Currently, it seems that the CwA is primarily owned by civil servants from the World Bank and the International Monetary Fund. Moreover, neither the private corporate sector nor institutional inves­tors seem to have fully bought into the CwA. The CwA fails to stimulate inclusive growth. The weak­esses of the CwA approach illustrate the need for a new agenda for development cooperation.